PCC Risk Assessment & Mitigation 4

Question 1

Which document formally authorizes the use of contingency reserves and defines conditions for their release?

Accepted Answer

Risk Management Plan

Answer

The Risk Management Plan defines how contingency reserves are calculated, tracked, and released based on risk outcomes.

Question 2

A 'secondary risk' in project management is best defined as:

Accepted Answer

A risk that arises as a direct result of implementing a risk response

Answer

Secondary risks emerge from the actions taken to address a primary risk and must themselves be assessed and managed.

Question 3

In a risk probability and impact matrix, risks falling in the high-probability and high-impact quadrant are typically assigned which priority?

Accepted Answer

High — immediate response required

Answer

High-probability, high-impact risks require immediate, active risk responses and close monitoring to protect project objectives.

Question 4

Which international standard provides guidelines for risk management processes applicable to project controls?

Accepted Answer

ISO 31000

Answer

ISO 31000 provides principles and guidelines for enterprise and project risk management applicable across industries.

Question 5

What is the key difference between a risk appetite and a risk threshold?

Accepted Answer

Risk appetite is the level of risk an organization is willing to accept; risk threshold is the point at which a risk requires escalation

Answer

Risk appetite describes overall tolerance for uncertainty, while risk thresholds define specific measurable limits that trigger escalation or response.

(PCC) Project Controls Certification Practice Test

(PCC) Project Controls Certification Practice Test

PCC Risk Assessment & Mitigation 4